While small and medium sized businesses have already faced energy price hikes of 250% in the last year, further rises await, according to the latest research.
Based on an estimated 65% rise by autumn, Britain’s small businesses will need to find an extra £2.5K + simply to pay their energy bills.
Chris Andersen, senior Insolvency Practitioner at Company Debt comments: “The last few years have been some of the toughest in living memory for the business community. The concern is that energy costs could prove the tipping point that pushes less resilient companies into insolvency.
Energy Hikes May Push ¼ of Hospitality & Leisure Businesses into Insolvency
While every sector will feel the pinch this winter, a recent survey suggests hospitality and leisure bosses face one of the toughest challenges. In fact, energy services group eEnergy survey found that 83% of bosses in the sector plan to make redundancies or reduce staff hours. More worryingly still, a quarter are considering closing their businesses for good.
The hospitality sector was one of the hardest hit by COVID-19, as well as staffing and supply chain issues from Brexit. The cost of living crisis, and now the rising cost of electricity and gas means working cashflow is at a near alltime low.
“It’s absolutely crucial that the sector receives as much support it can get – without it, more and more businesses and jobs will fall away.” commented Kate Nicholls,chief executive of UKHospitality.
- Business population estimates for the UK and regions: https://www.gov.uk/government/statistics/business-population-estimates-2019/business-population-estimates-for-the-uk-and-regions-2019-statistical-release-html
- What does the Average Business Spend on Energy?: https://www.businessenergy.com/blog/what-does-the-average-uk-business-spend-on-energy/
- UK Price Cap Set to Peak at Over £3000: https://www.bloomberg.com/news/articles/2022-06-21/uk-energy-price-cap-set-to-peak-at-over-3-000-in-2023